How Does Depreciation Affect the Financial Statements of a Small Business?

Entrepreneurs know their product, they know their customers, but unless they previously worked in finance or accounting, the money and business side of things can get a little tricky. Depreciation expense is a good example. It is a cost that is booked, but it has no impact on cash flow. As a result, it is a very good expense to know how to use because you can lower your tax liability without spending any money.

To learn how depreciation can impact your financial statements and how to make the most of a depreciation expense, please read my article at eHow Business and Personal Finance.

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